Labour hoarding by employers

Labour hoarding is the practice adopted by some companies of retaining their labour force intact, during a decline in demand, thus reducing the productivity of labour and raising the average variable cost per unit of output.

1. Structural rigidities in labour markets
2. Hoarding

1. Labour shortage
2. Labour displacement due to import competition

1. Ineffective economic structures in industrial nations

1. Unethical practices of employers

1. Hoarding